A shock Sunday night FOMC rate cut (100 bps) and up to $700 billion in liquidity (but still not calling it QE) in a coordinated central bank move certainly caught markets by surprise. RBNZ had cut earlier in the day by 75 bps, today BOJ signaled “No Change” but offered more stimulus (like the ECB & SNB – are they already negative enough?) The BOC had acted on Friday with a 50 bps cut to 0.75%, which is unlikely to be the end of things. In Asia the Nikkei closed down 2.46% and the ASX200 had its worst day since 1992, closing down 9.7%. USA500 futures remain limit down (5%) at 2555. Chinese data for January & February was woeful – Industrial Production -13.5%, Retail Sales -20.5% and Fixed Investment -24.5%.
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